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25% government bonus - Help to Buy ISA
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25% government bonus - Help to Buy ISA

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Posted 26th Jun

This deal is expired. Here are some options that might interest you:

Help to buy ISA, closing date approaching August 2019. If your 16 years or over open and apply start to add a small deposit and over time build up your saving the government. No bank will offer that uplift.
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If you are saving to buy your first home, save money into a Help to Buy: ISA and the Government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000.

Open: the Help to Buy: ISA is available from a range of banks, building societies and credit unions. The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home.

Save: save up to £200 a month into your Help to Buy: ISA. To kickstart your account, in your first month, you can deposit a lump sum of up to £1,200.

The minimum government bonus is £400, meaning that you need to have saved at least £1,600 into your Help to Buy: ISA before you can claim your bonus. The maximum government bonus you can receive is £3,000 – to receive that, you need to have saved £12,000.

Receive bonus: when you are close to buying your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home. The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.
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Hi there, please change misleading OP as the 25% bonus CANNOT be used for the deposit on the mortgage but only on the final balance. It was mis sold as this and is why they are closing them.
Informally known as Help to Sell.
thewhirlwind26/06/2019 23:43

The purchase price limit on these makes them pretty useless imo. Another …The purchase price limit on these makes them pretty useless imo. Another token gesture from politicians pretending they are trying to address the housing crisis. Why not just abolish stamp duty for first time buyers instead of all these ridiculous and far too complex schemes.


Purchase price limit of £250k maximum or £450k in London for a first time buyer not enough? If your first house is more than that then you won't be needing any help onto the ladder
To simplify this for anyone who is confused by use of jargon. Lets say the house is £100k. You have £10k in a help to buy ISA. Under the scheme rules, you can use the £10k balance towards your exchange deposit i.e the deposit you are required to make at start that goes to seller, but the bonus you would get i.e 25% of £10k = £2500, is actually claimed by your solicitor on your behalf, and can then be used to help towards remaining mortgage balance of £90k (also known as mortgage deposit). Hope this helps
Edited by: "DazLFC" 27th Jun
53 Comments
Informally known as Help to Sell.
Hi there, please change misleading OP as the 25% bonus CANNOT be used for the deposit on the mortgage but only on the final balance. It was mis sold as this and is why they are closing them.
always a catch with them
GST1126/06/2019 23:03

Hi there, please change misleading OP as the 25% bonus CANNOT be used for …Hi there, please change misleading OP as the 25% bonus CANNOT be used for the deposit on the mortgage but only on the final balance. It was mis sold as this and is why they are closing them.


When is the Help to Buy: ISA government bonus paid?

The government bonus is paid once it is certain the transaction will go ahead. This means that your solicitor or conveyancer will claim the bonus between exchange and completion. The government bonus contributes towards your overall deposit (sometimes referred to as the ‘mortgage deposit’) and therefore increases your savings for your first home.

If you are in the situation where you need the government bonus to make up the deposit on exchange of contracts then your solicitor or conveyancer will be able to advise you on your options. In this instance your solicitor or conveyancer should be able to agree a smaller deposit at exchange with the seller; with the promise of the government bonus to follow as part of the overall deposit.
GST1126/06/2019 23:03

Hi there, please change misleading OP as the 25% bonus CANNOT be used for …Hi there, please change misleading OP as the 25% bonus CANNOT be used for the deposit on the mortgage but only on the final balance. It was mis sold as this and is why they are closing them.

There's two help to buy schemes,
1) help to buy ISA, 25% bonus based on what you've saved

2) help to buy deposit, this is not an ISA but an interest free (for 5 years) loan from the government towards the deposit

Not missold, and not why it's closing.
Edited by: "Dgkrs" 26th Jun
chriscundall26/06/2019 23:12

When is the Help to Buy: ISA government bonus paid?The government bonus … When is the Help to Buy: ISA government bonus paid?The government bonus is paid once it is certain the transaction will go ahead. This means that your solicitor or conveyancer will claim the bonus between exchange and completion. The government bonus contributes towards your overall deposit (sometimes referred to as the ‘mortgage deposit’) and therefore increases your savings for your first home.If you are in the situation where you need the government bonus to make up the deposit on exchange of contracts then your solicitor or conveyancer will be able to advise you on your options. In this instance your solicitor or conveyancer should be able to agree a smaller deposit at exchange with the seller; with the promise of the government bonus to follow as part of the overall deposit.


While you can use the money you've saved in a Help to Buy ISA towards this exchange, it's only at completion that you receive the mortgage money and Help to Buy ISA bonus – so the bonus won't help towards the home exchange deposit.

-Money Saving Expert..
Dgkrs26/06/2019 23:13

There's two help to buy schemes, 1) help to buy ISA and 2) help to buy …There's two help to buy schemes, 1) help to buy ISA and 2) help to buy deposit, this is no am ISA it's a interest free (for 5 years) loan from the government Not missold, and not why it's closing.


Clearly says ISA in the OP mate
GST1126/06/2019 23:14

Clearly says ISA in the OP mate


Yeah it's pretty clear, not sure why you're confused. This is talking about the 25% bonus on what you have saved in your ISA.

The other scheme which you are confusing for is help to buy deposit where the gov will loan you part of the deposit, but the house HAS to be a new built.

With the ISA it can be any type of house up to a certain value. Clearly they're very different schemes.
Edited by: "Dgkrs" 26th Jun
The 25% deposit is the Help to Buy Isa. You are also referring to another Equity Loan help to buy. I have the help to buy ISA and when taking it out was specifically told and signed to say that it could NOT be used as the deposit, as my source of the MSE also states very clearly. Please get back in your box and do some research before misleading everyone with your ignorance
GST1126/06/2019 23:22

The 25% deposit is the Help to Buy Isa. You are also referring to another …The 25% deposit is the Help to Buy Isa. You are also referring to another Equity Loan help to buy. I have the help to buy ISA and when taking it out was specifically told and signed to say that it could NOT be used as the deposit, as my source of the MSE also states very clearly. Please get back in your box and do some research before misleading everyone with your ignorance


Firstly chill out.

You've said exactly what I have.

If you were smart enough you'd understand that I said basically what you did , but disagreed on it not closing because it's been missold.

As per the latest news (which I recommend you read) %60 of help to buy customers did not help to buy a property, it is closing because it has not benefited the people who were in need, it has inflated house prices and lined the pockets of builders. this is the reason it's closing.

I also have a help to buy ISA and a LISA which gets you a different help to buy bonus, but you probably think that's being missold too.
FYI, most solicitors charge £50 + vat to obtain your bonus. Take that into consideration.
Dgkrs26/06/2019 23:34

lined the pockets of builders. this is the reason it's closing.


How does the ISA line the pockets of the builders? Surely that relates to the help to buy equity loan, as that is only for new builds?
Dgkrs26/06/2019 23:34

Firstly chill out.You've said exactly what I have.If you were smart enough …Firstly chill out.You've said exactly what I have.If you were smart enough you'd understand that I said basically what you did , but disagreed on it not closing because it's been missold.As per the latest news (which I recommend you read) %60 of help to buy customers did not help to buy a property, it is closing because it has not benefited the people who were in need, it has inflated house prices and lined the pockets of builders. this is the reason it's closing.I also have a help to buy ISA and a LISA which gets you a different help to buy bonus, but you probably think that's being missold too.


Again, you clearly don't know what you've signed up to as you can only claim a help to buy bonus in either a LISA or a help to buy isa. It's clear as day on both MSE and the money advice service website that a help to buy isa bonus cannot be used as the holding deposit on a house, as the OP suggests. My point stands and you will be disappointed when you try to do so as you haven't researched this properly.

In terms of why is was cancelled I agree with your statement but the reason it hasn't helped people to buy a house who couldn't already afford it is because, they, like the OP think it would help save their holding deposit, which as I stated from both MSE and Money advice service, is incorrect and cannot be done.
The purchase price limit on these makes them pretty useless imo. Another token gesture from politicians pretending they are trying to address the housing crisis. Why not just abolish stamp duty for first time buyers instead of all these ridiculous and far too complex schemes.
thewhirlwind26/06/2019 23:43

The purchase price limit on these makes them pretty useless imo. Another …The purchase price limit on these makes them pretty useless imo. Another token gesture from politicians pretending they are trying to address the housing crisis. Why not just abolish stamp duty for first time buyers instead of all these ridiculous and far too complex schemes.


Purchase price limit of £250k maximum or £450k in London for a first time buyer not enough? If your first house is more than that then you won't be needing any help onto the ladder
GST1126/06/2019 23:45

Purchase price limit of £250k maximum or £450k in London for a first time b …Purchase price limit of £250k maximum or £450k in London for a first time buyer not enough? If your first house is more than that then you won't be needing any help onto the ladder


Kind of agree lol
GST1126/06/2019 23:03

Hi there, please change misleading OP as the 25% bonus CANNOT be used for …Hi there, please change misleading OP as the 25% bonus CANNOT be used for the deposit on the mortgage but only on the final balance. It was mis sold as this and is why they are closing them.


I've reported the thread but keep liking this comment as the OP clearly isn't bothered about misleading people and neither are the Mods. Reported and hopefully no one signs up without understanding it fully
GST1126/06/2019 23:03

Hi there, please change misleading OP as the 25% bonus CANNOT be used for …Hi there, please change misleading OP as the 25% bonus CANNOT be used for the deposit on the mortgage but only on the final balance. It was mis sold as this and is why they are closing them.


It is the exchange deposit it can't be used for, it CAN be used for mortgage deposit
DazLFC26/06/2019 23:54

It is the exchange deposit it can't be used for, it CAN be used for …It is the exchange deposit it can't be used for, it CAN be used for mortgage deposit


Exactly however the mortgage deposit is the final mortgage amount, NOT as the OP states the deposit to buy the house, i.e the holding/ exchange deposit
GST1126/06/2019 23:45

Purchase price limit of £250k maximum or £450k in London for a first time b …Purchase price limit of £250k maximum or £450k in London for a first time buyer not enough? If your first house is more than that then you won't be needing any help onto the ladder


No it's not enough.. I know as my daughter is currently buying her first place... The point is when we bought our house 20 years ago the price was probably 3-4 times the average wage. The same house is now is probably 15 - 20 times the, average, wage. This is totally unfair to the younger generation and it is disgraceful that none of the politicians have done anything about it. All working youngsters imo should be able to afford a standard 2 bed house to live in but very few can.
thewhirlwind27/06/2019 00:00

No it's not enough.. I know as my daughter is currently buying her first …No it's not enough.. I know as my daughter is currently buying her first place... The point is when we bought our house 20 years ago the price was probably 3-4 times the average wage. The same house is now is probably 15 - 20 times the, average, wage. This is totally unfair to the younger generation and it is disgraceful that none of the politicians have done anything about it. All working youngsters imo should be able to afford a standard 2 bed house to live in but very few can.


Not sure where you live but 250k is plenty enough for a 2 bed in most of the country . Agree with the inflated prices etc though. A 2 bedroom in my area is less than 5x my wage and I'm not a high earner
GST1126/06/2019 23:55

Exactly however the mortgage deposit is the final mortgage amount, NOT as …Exactly however the mortgage deposit is the final mortgage amount, NOT as the OP states the deposit to buy the house, i.e the holding/ exchange deposit


I guess what is confusing for many is that the conveyancer or solicitor is one who actually claims the bonus, which I think adds to the misconception that this in turn helps with initial exchange deposit
In London... She's having to buy outside where the 250k limit is not enough for what she's buying
To simplify this for anyone who is confused by use of jargon. Lets say the house is £100k. You have £10k in a help to buy ISA. Under the scheme rules, you can use the £10k balance towards your exchange deposit i.e the deposit you are required to make at start that goes to seller, but the bonus you would get i.e 25% of £10k = £2500, is actually claimed by your solicitor on your behalf, and can then be used to help towards remaining mortgage balance of £90k (also known as mortgage deposit). Hope this helps
Edited by: "DazLFC" 27th Jun
thewhirlwind27/06/2019 00:10

In London... She's having to buy outside where the 250k limit is not …In London... She's having to buy outside where the 250k limit is not enough for what she's buying


I've recently bought a 4 bedroom with garage, mid terraced house for less than 190k. What are you on about?! Everyone would like to live in a nice, posh area, but you're buying a first house for god's sake
Can a parent open one on behalf a child under 16?
So they don't want you buying the property outright, but are happy to help a bit as long as you're in debt with a mortgage.

Seems a win win for the government.
LISA > This
Jonnyblock27/06/2019 00:53

Can a parent open one on behalf a child under 16?


Nope. Have a look at child trust funds.
DazLFC27/06/2019 00:19

To simplify this for anyone who is confused by use of jargon. Lets say the …To simplify this for anyone who is confused by use of jargon. Lets say the house is £100k. You have £10k in a help to buy ISA. Under the scheme rules, you can use the £10k balance towards your exchange deposit i.e the deposit you are required to make at start that goes to seller, but the bonus you would get i.e 25% of £10k = £2500, is actually claimed by your solicitor on your behalf, and can then be used to help towards remaining mortgage balance of £90k (also known as mortgage deposit). Hope this helps

I did not know that. Thanks for clearing that up mate! Would the same apply to the LISA 25% bonus? Worth switching my help to buy to a LISA? Don't plan on buying within the next year.
m5rcc26/06/2019 23:02

Informally known as Help to Sell.


And also known as “rob Peter to pay Paul”(y)
Think people are getting wires crossed.
There are two Help To Buy schemes introduced to help people.

The Help To Buy ISA
And
The Help To Buy Equity Loan

The ISA is a mechanism to save money towards the deposit for a house. The Government give a 25% bonus on savings over £1600 to a capped amount.
I've just used this to buy a house with a 5% mortgage, for arguments sake property price is £100,000, £5,000 deposit would require me to have £4,000 in my Help To Buy ISA with the conveyancers claiming the additional £1,000.

The Equity Loan is a mechanism for new build property buyers to reduce the overall mortgage value for the first 5 years.
For a theoretical new build property worth £100,000 with a 5% deposit, the Government provide an interest free loan for 20% £20,000, meaning the mortgage value is the remaining £75,000. At the end of the 5 years, the property is then remortgage for the correct value and loan repaid or pay it off in a lump sum with personal cash.

Ta
Mark
Dgkrs26/06/2019 23:34

Firstly chill out.You've said exactly what I have.If you were smart enough …Firstly chill out.You've said exactly what I have.If you were smart enough you'd understand that I said basically what you did , but disagreed on it not closing because it's been missold.As per the latest news (which I recommend you read) %60 of help to buy customers did not help to buy a property, it is closing because it has not benefited the people who were in need, it has inflated house prices and lined the pockets of builders. this is the reason it's closing.I also have a help to buy ISA and a LISA which gets you a different help to buy bonus, but you probably think that's being missold too.


hi! what is LISA? CAN HAVE BOTH ISA? THANKS
J4GG427/06/2019 01:03

So they don't want you buying the property outright, but are happy to help …So they don't want you buying the property outright, but are happy to help a bit as long as you're in debt with a mortgage.Seems a win win for the government.


How on Earth do you deduce that?

As soon as I got my bonus it went straight back into the mortgage. Not really a big deal.

So many people from the anarchy/feel sorry for me brigade on this site.
Can this be used as a normal isa without buying a property... i ask as last time i looked the base rate interest without bonus was better than a normal isa this may have changed. But i was always curious if this could have been used as normal isa type saving account without buying a property
We used HTB ISA and Government topped with almost 2k our savings, Happy days!
Buying houses on benefits??? Wtf do i quit my job??
I opened a Help to Buy when they first came out as previously my house savings was in a normal ISA. You can put an initial large payment into it of around £1000 then its monthly deposits of £200. Most help to buy ISA will still earn interest of around 2% and this isn't included in the deposits you can make. But as someone previously mentioned the end bonus 25% cannot be used towards the initial purchase deposit. This pretty much defeats the object of it helping to buy. Hence as soon as the Lifetime ISA (LISA) came out I transferred to that. No penalties and no loss of interest or to the 25% bonus. Its much more flexible as you can either use it for a house DEPOSIT or towards retirement. You can also pay in up to £4000 a year and do it in one lump sum if you want to. Again you earn interest on your savings but the big winner is that the bonus can be used towards the Deposit when purchasing a property.
My other half and I both had Help to Buy ISAs when we bought our house two years ago. We didn't have a big deposit when we bought it so our bonus wasn't massive, but it was enough to pay our solicitor fees plus a bit more which was great.
jim22827/06/2019 06:42

hi! what is LISA? CAN HAVE BOTH ISA? THANKS


There's no point in having both as the government will only give you a 25% bonus on one of them.

A LISA helps you save more over many years, its max bouns from 18-49 years is 33k whereas the max bonus for a HTB ISA is 3k.
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